2. Paula Corporation had net income of $365,000, paid its required preferred dividend of $17,500, and had no other stock transactions during the year. If the average number of common shares outstanding during the year is 69,500, the earnings per share is:

a. $5.50
b. $10.00
c. $5.25
d. $5.00

3. On March 1, 20x9, Joshua Company had 100,000 shares of its $100 par value common stock issued and 45,000 shares outstanding. On March 12, the company declared a 20% stock dividend to be distributed on March 31. On October 1, the Company declared a 3-for-1 stock split. How many shares of common stock were outstanding at December 31, 20x9: